Trades that performed best in the three weeks since Donald Trump's election victory are taking a breather, with the dollar and U.S. bond yields falling from recent peaks and equity index futures signaling stocks will slip from all-time highs.

The dollar could face further resistance in the week ahead given potentially risk-laden events such as the midweek OPEC meeting and Italy's Dec. 4 referendum on constitutional reforms.

Consistently bullish (and right) on fixed-income for as long as anyone can remember, Van Hoisington isn't buying the conventional wisdom that the election results mean the economy and inflation are set for a demand shock in the form of lower taxes, less regulation, and more deficit spending.

His view of the trajectory of the economy (sluggish) over the next four to six quarters is unchanged.

For tax cuts to make a positive contribution, monetary policy must "remain favorable, not adversarial," and the Fed is about to hike rates, he says. The Reagan tax cuts, he reminds, were far larger than what's being discussed, and occurred as interest rates were declining sharply.

Hoisington: "Markets have a pronounced tendency to rush to judgment when policy changes occur,” and were proven wrong about potential for 2009 stimulus and QE1 to ignite inflation.

The president-elect's pro-business agenda is inherently "unfriendly" to bonds, Jeff Gundlach tells Barron's, as it will lead to stronger economic growth and renewed inflation.

Look for Trump to "amp up the deficit" to pay for infrastructure and other programs - producing an inflation rate of 3% and nominal GDP growth of 4-6%. Given that, there's no way the 10-year Treasury yield stays near its current level of 2.15%, and it could rise as high as 6% in the next four or five years. [Serious question: How does "amp up the deficit" differ in any way from what was done in 2009? Can anyone say "shovel-ready"?]

For now, Gundlach (DFLEX, DBLFX, DBL) remains a fan of TIPS (NYSEARCA:TIP), and has swapped a good deal of his government paper for those inflation-protected securities.

The bond market was closed today for Veteran's Day, but the iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) was open for business and it fell another 0.6%, bringing its loss this week to 7.4% - the largest weekly decline since inception in 2002. Its leveraged inverse cousin, the ProShares UltraShort Lehman 20+ Year ETF (NYSEARCA:TBT) gained more than 14% for the week.

The yield on the 10-year Treasury had its biggest surge in three years, closing the week at 2.15%.

In no surprise, the flow out of fixed income came as the S&P 500 posted its best week in two years, and the Dow its best week in five years.

The sharp rise in yields - not just in the U.S., but globally - could snuff out global reflation, warns Goldman, which sees 2.50% as a level the U.S. economy can handle without threatening growth.

Speaking to CNBC this morning, fund manager Stanley Druckenmiller - who had been pessimistic about the U.S. economy, said that he is now "quite, quite optimistic" on the U.S. economy following the election of President-elect Donald Trump. "It's as hopeful as I've been in a long time."

"I sold all my gold on the night of the election." Why? “All the reasons I owned it for the last couple of years seem to be ending", namely, expectations that inflation is now set to spike, forcing money out of safe assets - like gold and Treasurys - and into the dollar.

Druckenmiller said he now has a “large bet on economic growth. I’m short bonds, Bunds, Italian bonds, U.S. bonds.” The trades reflect his expectation of higher deficits and stronger growth leading to another surge in debt.

Druck said he is “hopeful” on the Trump administration and political climate. “I would not be surprised if we’re looking at the absolute peak of divisiveness.”

Standard & Poor's has given the all-clear to America's credit rating, affirming it at 'AA+' with a stable outlook.

"We assume the longstanding institutional strengths and robust checks and balances of the U.S. will support policy execution in a Trump administration, despite the president-elect's lack of experience in public office," the ratings agency said.

Moody's announced in September the election wouldn't impact its 'AAA' rating for the U.S.

Alongside a swoosh down in stocks and the peso, the 10-year Treasury yield has tumbled a full 10 basis points to 1.75%, and gold has popped higher by 2.8% to $1,310 per ounce.

At the moment, Trump is holding onto a slim lead in Florida with the votes nearly all counted. He's also begun to pull ahead in Ohio, and is showing surprising strength in Virginia. North Carolina and New Hampshire are as close as can be.

Strategists are cautioning that a victory for either candidate could carry risks for Treasuries and the greenback.

A Clinton triumph would cement the already high expectations the Fed will raise rates in December, putting upward pressure on yields, while a Trump presidency would likely see Chair Janet Yellen excused from a second term.

With a path cleared for a Fed rate hike, the dollar is likely to gain momentum, but the full affects on the currency have been more ambiguous.

The manufacturing PMI reversed September's sizable drop, bouncing in October to 51.9 from 51.5. Expectations had been for 51.6.

New Orders, however, fell to 52.1 from 55.1. Growing were Production to 54.6 from 52.8, Employment to 52.9 from 49.7, and Supplier Deliveries to 52.2 from 50.3 (slowing more). Prices Paid rose to 54.5 from 53.0.

Janet Yellen's afternoon speech jolted the Treasury market out of a late-session Friday slumber, with the 10-year yield jumping five basis points to touch 1.80% for the first time since early June.

While not commenting on current policy, the more theoretical speech suggested the Fed ought to consider letting the economy/inflation run hotter than would otherwise be advised in order to heal the still-active wounds from the financial crisis.

"I didn't hear, 'We are going to tighten in December,'" Jeff Gundlach tells Reuters. "I think she is concerned about the trend of economic growth. GDP is not doing what they want."